Korean cryptocurrency exchange CEO under arrest.

Kim Ik-hwan, CEO of Coinnest a domestic cryptocurrency in South Korea has been arrested by the Korean officials.

CEO along with a senior executive of the exchange was arrested for deceit and embezzlement of funds. The officials suspect that modus operandi as transferring of the funds from customers account to their own.

Based on the trading volumes, Coinnest is amongst the top exchange in South Korea. Another exchange is also under the scrutiny of the Investigators as they are suspicious of its involvement in criminal activity.

It is after the raid of three cryptocurrency exchanges at Yeouido in the last month that such action of arresting the personnel of the exchange has been taken.

As the passing of regulations that demanded more transparency in dealings, Korean authorities had thereby started investigating the cryptocurrency exchanges since the beginning of this year.

The nation will prioritize transparency in the trading of virtual currency within the boundaries of the current law, and block illegal and unfair activities, but it stopped short of banning trading.

The government had also warranted more surveillance and another raid on exchanges in January.

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